Sotera Health Shares Rise 18% in a Year. Here's What a $37 Million Stake Trim Signals
Key Points
MIG Capital sold 2,262,292 shares of Sotera Health worth an estimated $37.41 million in the fourth quarter.
Meanwhile, the quarter-end position value decreased by $31.83 million, reflecting both trading activity and share price movements.
At quarter's end, the fund reported holding 1,964,518 SHC shares valued at $34.65 million.
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On February 17, 2026, MIG Capital disclosed a reduction in its holdings of Sotera Health (NASDAQ:SHC), selling 2,262,292 shares. The estimated transaction value, based on quarterly average pricing, is $37.41 million.
What happened
According to an SEC filing dated February 17, 2026, MIG Capital reduced its stake in Sotera Health by 2,262,292 shares during the fourth quarter of 2025. The estimated value of the sold shares is $37.41 million, based on the average closing price for the quarter. At quarter’s end, the total position value declined by $31.83 million, a figure that includes both trading and share price changes.
What else to know
- This was a sell transaction, leaving Sotera Health at 5.88% of MIG Capital’s 13F assets under management.
- Top holdings after the filing:
- NASDAQ:META: $52.45 million (8.9% of AUM)
- NASDAQ:DXCM: $40.19 million (6.8% of AUM)
- NASDAQ:SHC: $34.65 million (5.9% of AUM)
- NASDAQ:MSFT: $34.25 million (5.8% of AUM)
- NASDAQ:CELH: $33.93 million (5.8% of AUM)
- As of Friday, Sotera Health shares were priced at $13.41, up 18% over the past year, which was just slightly under the S&P 500’s roughly 20% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of Friday) | $13.41 |
| Market capitalization | $3.8 billion |
| Revenue (TTM) | $1.16 billion |
| Net income (TTM) | $77.95 million |
Company snapshot
- Sotera Health provides sterilization services (gamma, electron beam, EO processing), lab testing, and advisory solutions for medical device, pharmaceutical, and food industries.
- The firm operates a service-based business model generating revenue through sterilization, laboratory testing, and consulting for regulated industries.
- It serves medical device manufacturers, pharmaceutical companies, and food/agricultural producers across North America, Europe, and globally.
Sotera Health is a leading provider of sterilization and laboratory services, supporting critical supply chains in healthcare, pharmaceuticals, and food safety. The company leverages a diversified portfolio of sterilization technologies and testing capabilities to serve highly regulated industries. Its scale, technical expertise, and global reach provide a competitive advantage in ensuring safety and compliance for its customers.
What this transaction means for investors
Sotera continues to scale while maintaining strong profitability, and it just posted its 20th consecutive year of revenue growth. In 2025, sales climbed 5.7% to $1.16 billion, while adjusted EBITDA rose 8.2% to about $594 million, reflecting solid operating leverage across its Sterigenics sterilization business and related testing services. Meanwhile, net income nearly doubled from the prior year to $78 million, showing meaningful progress on the bottom line.
Despite trimming its position, the holding still represents nearly 6% of portfolio assets, placing it among the fund’s larger positions alongside companies like Meta, DexCom, and Microsoft. That suggests this move could just be routine portfolio management rather than reflecting a dramatic shift in conviction. It’s also important to note that shares have fallen about 24% this year, and the one-year gain beforehand was significantly larger. With that in mind, MIG may have just been locking in gains.
So what does that mean for investors watching Sotera? Ultimately, the company expects another year of growth, projecting revenues to increase between 5% and 6.5% in 2026, and adjusted EBITDA to grow between 5.5% and 7%. If it delivers, it makes sense why a fund like MIG would continue to hold a meaningful position.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius, Meta Platforms, and Microsoft. The Motley Fool recommends DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.
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